Financial regulation

The unauthorized practice of transactions reserved for financial institutions, as well as the exercise by a financial institution of activity not included in its legal object, and the carrying out of unauthorized operations or operations which are specially prohibited to them, is punishable by a fine of AOA300,000 to AOA150 million and from AOA500,000 to AOA500 million, depending on whether an individual or legal person is involved.

In addition to fines, ancillary sanctions, such as seizure and confiscation of the object of the offence, including the economic proceeds thereof, may be imposed on the offender.

A person undertaking a regulated activity without being authorized, licensed or exempt, commits a criminal offence and may be liable to imprisonment.

For example, engaging in financial services without an Australian Financial Services license, attracts a criminal penalty under the Corporations Act 2001 (Cth) of five years’ imprisonment, and, in the case of a body corporate, a maximum 6,000 penalty units (having a monetary value of AUD1.26 million). The court may also declare a maximum pecuniary civil penalty.

A person who engages in consumer credit activity without an Australian Credit License is, in the case of a body corporate, subject to a civil penalty of up to 5,000 penalty units (having a monetary value of AUD1.05 million) and a criminal penalty fine of up to AUD504,000, or in the case of an individual, two years' imprisonment.

If a corporation should be registered with APRA as a registrable financial corporation, and fails to provide APRA with the relevant documents within 60 days of becoming a corporation that should be registered with APRA, the corporation is subject to a fine of 50 penalty units (having a monetary value of AUD10,500) for every day that it does not comply with the reporting requirements.

Failure to be authorized may result in payment penalties, administrative or criminal sanctions.

Carrying out activities that are private of financial institutions and other entities authorized to operate by the Central Bank and the Brazilian Securities Commission (CVM) may subject the offender to criminal sanctions, in addition to civil and administrative penalties.

Provincial (Québec)

Anyone undertaking any regulated activity without being authorized or registered, commits an offence (sometimes criminal) and is liable to be subject to a fine (and in some cases to imprisonment).

The persons or legal entities engaging in banking activities, such as accepting deposit in a customary manner from the public or as broker, commits a criminal offence and is liable to imprisonment (from 541 days up to five years) and can also face charges as author of fraud.

Regarding the registry of securities, any person or legal entity that fails to obtain the proper authorization is liable and obliged to compensate damages due to the breach and shall be subject to administrative and criminal sanctions (imprisonment). In addition, in case of misleading information submitted before the CMF, criminal sanctions such as imprisonment may apply.

A person undertaking a regulated activity without being authorized or exempt commits a criminal offence and is liable to imprisonment and economic sanctions.

A person undertaking a regulated activity without being authorized or exempt commits an administrative or criminal offence and is liable to sanction.

These are usually administrative sanctions, stipulated for example in Section 36a of the Act on Banks. There could also be penalties up to the amount of CZK 50 million for banks.

A person undertaking a regulated activity without being authorized or exempt commits a criminal offence and is liable to a fine or to imprisonment.

A person undertaking a regulated activity without being authorized or exempted, commits a criminal offence and is liable to imprisonment and a fine. 

A person undertaking a regulated activity without being authorized or exempt, commits a criminal offence and is liable to imprisonment of up to five years.

Bank of Ghana 

A person who undertakes a regulated activity without a license commits an offense and upon summary conviction may be liable in the case of a body corporate, to a fine ranging from GHS18,000 to GHS60,000 or in the case of an individual, either the above fine and/or a term of imprisonment ranging between two to four years.  

Securities and Exchange Commission 

A person who undertakes a regulated activity within the securities industry without a license is liable to pay a penalty of GHS48,000. 

National Insurance Commission 

A person who undertakes an insurance activity without a license commits an offense and is liable on summary conviction to a fine not exceeding: 

• in the case of a body corporate, to a fine of GHS30,000; or
• in the case of an individual, either a fine of GHS30,000 or a term of imprisonment of five years or to both.  

A director, partner or officer of a corporate body or partnership convicted of undertaking an insurance activity without a license shall be considered to have committed an offense and is liable to the fine and/or term of imprisonment stated above. 

National Pensions Regulatory Authority 

Anyone who acts as a trustee without a license commits an offense and is liable on summary conviction to a fine of GHS24,000 in the case of a body corporate or, to a term of imprisonment not exceeding two years or to both in the case of an individual. 

A body corporate which acts as a pension fund manager or custodian without registration is liable on summary conviction to a fine of not more than GHS12,000.

A person undertaking a regulated activity without being authorized or exempt, commits a criminal offence and is liable to imprisonment.

Any person who undertakes a regulated activity without being authorized or exempt commits a criminal offence and is liable to financial sanctions. Depending on the nature of the offence, the Central Bank of Ireland can issue a caution or reprimand, a disqualification of an individual from managing a regulated firm, a prohibition of an individual from working in a regulated firm and fines ranging from up to EUR1 million (for individuals) and up to EUR10 million or 10% of the firm’s turnover (for corporations).

The provision of banking and/or financial activities in Italy vis-à-vis the public, without being authorized, triggers criminal sanctions (in the form of a financial penalty and/or imprisonment).

In addition (based on a number of Italian court judgements) loans granted by an entity which is not duly authorized will be null and void.

A person, be it a natural or legal person, undertaking a regulated activity without being approved, authorized or exempted is liable to a certain number of sanctions.

Failures are classified into four categories and subject to a quantum of financial penalties.

The quanta apply to any stakeholder in the regional financial market as well as to any natural or legal person responsible for non-compliance.

Failure, for instance, to obtain a visa by the Regional Council results in the nullity of transactions, both with regard to the applicant and the solicitated public. In addition, issuers are liable to sanctions from the Regional Council, without prejudice to legal proceedings (Article 115 of the General Regulation of the CREPMF).

A person or a corporation undertaking a regulated activity without prior registration is deemed to have committed a criminal offence and is subject to imprisonment and/or a fine.

A person or company undertaking a regulated activity without being authorized or exempt commits a criminal offence and is liable to imprisonment and fines. Administrative sanctions and nullity of the agreements is also possible.

Any person who carries out a regulated activity without a license commits a criminal offense and on conviction is liable to pay a fine not exceeding MUR 1 million (approximately USD27,300) and to imprisonment for a term not exceeding eight years.

A person undertaking a regulated activity without being authorized commits a criminal offence and is liable to imprisonment.

Criminal sanctions applicable to individuals carrying out a regulated activity without authorization:

• imprisonment from 3 months to 1 years and/or a fine of MAD20,000 to MAD200,000 for any person improperly using a trade name, a company name or an advertisement and, in general, any expression suggesting that he is authorized as a credit institution;
• imprisonment from 6 months to 3 years and/or a fine of MAD100,000 to MAD5 million for any person who carries out operations for which he has not been approved;
• the court may also order the closing of the establishment where the offence was committed and the publication of the judgment in the newspapers it designates at the convicted person's expense.

Criminal sanction applicable to legal entities provided by the Law for failure to be authorised is the closing of the entity where the offence was committed.

Failure to be authorized can, among others, lead to:

• orders for incremental penalty payments and publication thereof;
• administrative fines (with a maximum of € 5 million (exemptions may apply, eg higher fines in case of recidivism) and publication thereof;
• criminal sanctions, including a fines or imprisonment; and
• directions or public warnings.

An unregistered individual that knowingly breaches the Financial Service Providers (Registration and Dispute Resolution) Act 2008 by providing a financial service without being registered, or is not a member of an approved dispute resolution scheme could be liable to a term of imprisonment of up to 12 months and/or a fine of up to NZD100,000. For a person that is not an individual this fine cannot exceed NZD300,000.

Providing a financial advisor service without permission can lead to a fine between NZD10,000 and NZD50,000 whereas holding out as an authorized financial advisor can result in a fine for the individual of up to NZD10,000 and of up to NZD50,000 for an entity.

Providing a market service without a license may give rise to civil liability for a pecuniary penalty of up to NZD200,000 for an individual and up to NZD600,000 in any other case. A range of other civil liability orders are available, including compensatory orders. From 29 June 2020 this will also apply to persons providing financial advice service without a license.

A person that falsely holds itself out as a registered bank can be penalized. An individual can be imprisoned for up to 18 months or to a fine of up to NZD200,000. A body corporate can be fined up to NZD2 million.

A person undertaking a regulated activity without being authorized or exempt, commits a criminal offence and is liable to imprisonment.

An individual or company undertaking a regulated activity without being authorized is a criminal offence, punishable with imprisonment and further monetary penalties.

In principle, a person who performs a regulated activity without being authorized, or without having an exemption from the duty to be authorized, commits a criminal offence and may be fined or imprisoned.

A person undertaking banking activity or financial investment activity without being authorized commits a very serious administrative offense and is liable for the payment of penalties, and might be subject to additional material sanctions relating to the entity or to the carrying out of the activity.

A person undertaking insurance and reinsurance activity, reinsurance mediation activity or pension fund management activity without being authorized commits a very serious administrative and/or criminal offense and may be liable for the payment of penalties and/or imprisonment, as applicable.

There are civil and criminal penalties for the entity and officers and directors involved. Depending on the violation, the individuals can be barred from the industry and disqualified from obtaining licenses and authorizations in Puerto Rico.

A person undertaking a regulated activity consisting of lending activities, investment services or other activities specific to credit institutions, investment firms and/or investment vehicles, without being authorized, commits a criminal offence and may be liable to imprisonment.

Undertaking regulated activities without appropriate authorization can lead to an administrative fine for individuals or legal entities. It can also constitute a criminal offence resulting in a criminal fine, compulsory community service, compulsory labor, arrest for up to six months or imprisonment for up to five years. Performing banking operations without a license is a separate criminal offence with a maximum punishment of seven years’ imprisonment.

In addition, a legal entity acting without authorization may be liquidated by the court and/or have the proceeds of its activities confiscated by the state.

A person, be it a natural or legal person, undertaking a regulated activity without being approved, authorized or exempted is liable to a certain number of sanctions.

Failures are classified into four categories and subject to a range of financial penalties.

The penalties apply to any stakeholder in the regional financial market as well as to any natural or legal person responsible for non-compliance.

Failure, for instance, to obtain the prior visa by the Regional Council results in the nullity of transactions, both with regard to the applicant and the solicitated public. In addition, issuers are liable to sanctions from the Regional Council, without prejudice to legal proceedings (Article 115 of the General Regulation of the CREPMF).

A person (including a company) conducting a regulated activity without being authorized or exempt commits an offence and is liable to fines ranging from S$2,000 to S$250,000 and imprisonment (if applicable), or both.

A natural person undertaking a regulated activity without being authorized or exempt, commits a criminal offence and is liable to imprisonment.

Pursuant to the Act on Criminal Liability of Legal Entities, a legal entity may also be held liable for undertaking a regulated activity without being authorized or exempt. In this case, the sanctions for such conduct may include winding-up of the legal person, forfeiture of property, pecuniary penalties, prohibition to undertake certain activities or disclosure of the court decision.

A person undertaking regulated activity without being duly authorized or exempt commits a criminal offence and is liable to imprisonment and, if applicable, fines.

A person undertaking a regulated activity without being authorized or exempt may be subject to a fine and other penalties (e.g. suspension of management position).

The Swedish Financial Supervisory Authority (Finansinspektionen) takes action against companies operating in the financial markets without the proper authorization by ordering the company to cease operations. The order may be coupled with a fine.

A person undertaking a regulated activity without being authorized or exempt, commits a criminal offence and is liable to a fine and/or imprisonment. 

Banking activity

Carrying on banking activity, banking transactions or other financial services without the appropriate license or in violation of such license may be subject to fines ranging from GBP54 (UAH1,700) to GBP1,610 (UAH51,000) depending on the size of profit received from unauthorized transactions, among other factors.

Financial services

 

Carrying on financial services without the appropriate license or in violation of such license may be subject to fines ranging from GBP537 (UAH17,000) to GBP2,685 (UAH85,000) depending on the size of profit received from unauthorized transactions, among other factors.

The National Securities and Stock Market Commission may impose penalties on participants in financial markets for an unauthorized activity (without a license) in amounts ranging from GBP537 (UAH17,000) to GBP5,369 (UAH170,000).

A person undertaking a regulated activity without being authorized or exempt, commits a criminal offence and is liable to imprisonment, fines and warnings. Contracts entered into with persons who are not authorized may not be enforceable and persons may be subject to compensation in various circumstances. 

A person undertaking a regulated activity without being authorized or exempt, commits a criminal offence and is liable to imprisonment.

Depending on the individual circumstances, this could lead to corporate fines and trading privileges being removed, individual directors and corporate officers being held accountable personally for breaches of fiduciary duties, and in the case of compliance breaches and crimes this can include fines and/or terms of imprisonment of varying degrees of severity.

UAE lenders who enter into financial arrangements with a borrower in the UAE without a license may face imprisonment and/or a fine and the institution may be liable for civil and criminal claims. The relevant UAE authorities, such as the Central Bank of the UAE (Central Bank) and the Securities and Commodities Authority (SCA) may in addition impose administrative sanctions and fines.

In the case of the DIFC, if a relevant lender does not satisfy the requirements of the Dubai Financial Services Authority (DFSA), under the regulatory law and DFSA's Enforcement Rulebook the DFSA can enforce the following actions as punishment:

• a fine of US$100,000 per contravention;
• damages or restitution;
• injunctions and restraining orders;
• corporate penalties – unlimited fines through the Financial Markets Tribunal (FMT); and
• a banning order through the FMT.

As a consequence of violating the Financial Services Prohibition section of the regulatory law, lenders will also face censure by way of publication of any enforcement action leading to critical reputational damage (and the loan arrangement may also be considered unenforceable).

Lending

Penalties for violations of law can include cease and desist orders, civil monetary fines, enforcement actions, prescriptive orders, and even imprisonment depending on the regulator and the nature of the infraction. In some cases, if an entity is lending without authorization to do so, the loan will be considered void and unenforceable or the lender will be enjoined from collecting interest on the loan.

Securities

Examples of penalties for failure to obtain authorization are, for broker-dealers:

• cease and desist orders;
• monetary fines and penalties;
• disgorgement of fees, compensation or profits;
• potential rescission of any transaction intermediated by an unlicensed entity or person; and
• willful violations of the Securities Exchange Act of 1934 (SEA) may be prosecuted as criminal violations, with large fines to entities and potential incarceration for individuals.

And for Investment Advisers (as defined in the Investment Advisers Act of 1940):

• cease and desist orders;
• monetary fines and penalties;
• injunctions; and
• willful violations of the Investment Advisers Act of 1940 (IAA) may be prosecuted as criminal violations, with large fines to entities and potential incarceration for individuals.